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1
Total Customer Analytics
Equipment Sample
Selected UCC Data Customer Analysis
EXECUTIVE SUMMARY
2
UCC data has limited much of the analysis we can do with real data. Based on the UCC data sample, however, the following conclusions can be made.
The revenue and customer base have fallen significantly over the years examined.
Construction is your biggest industry (54%), especially heavy construction and specialty trade contractors. Landscapers are also important.
The customer base is widely dispersed geographically, with some sun belt concentration.
Contacts are overwhelmingly senior managers, male, and non-Hispanic.
80% of your customers are in 247 geographic markets and 20 industries. You serve 6.7% of the potential customers in these markets, which is partly a reflection of the UCC data and being in a capital goods business. It also shows that you have significant growth opportunities.
All Other Crop Farming is your most penetrated industry at 66%. You have very good penetration in many smaller geographies. You’re under-penetrated in Residential Building Construction and the larger geographic markets.
3
Excavators are your top item type producing 36% of your revenue. Revenue per unit varies substantially among your item types.
The top 20% of your customers produced 65% of your revenue in 2010. The main internal differentiator between your top customers and the rest is they ordered more times during the year.
Decision tree analysis shows your top customers fall into specific SICs, with a further split of one node by Contact Title.
Decile migration shows fairly high customer loss from year-to-year and over the 5-year period. Most of this is probably accounted for by reliance on UCC data, being in a capital goods business, and the economic downturn, but some may be a reflection of customer dissatisfaction.
Customers in the top recency decile last purchased 206 days ago on average. The top frequency decile customers average 6 transactions over the past five years (most only have 1 transaction), while the top monetary value customers average $3.1 million.
Market Basket Analysis shows four product-pairs that customers purchased together over time that could be cross-sold/upsold.
4
OVERVIEW
5
Data Sources/Methodology This analysis is based on a sample of United States
UCC filings data from 2005 to 2010. Complete UCC data would by itself be a sample, as it is only filed when equipment is financed.
The only firmographics data available is SIC codes which limits our ability to provide good profiling information.
Complete customer data, along with customer interfacing, will substantially increase the value of the analysis.
This is only a sample of some of the data you will receive. The full report will have additional analyses for you.
6
7
A total of 106,739 transactions spanning the period from
1/1/2006 through 12/23/2010 are included. Revenue by year is
shown below. 2010's revenue changed by -85% from 2006.
$10,503
$8,906
$5,804
$2,312
$1,622
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2006 2007 2008 2009 2010
Mill
ion
s
Yearly Revenue
8
A total of 58,503 unique customers were active during this time
period. Below is a count of active customers by year. Active
customers declined by -81% in 2010 compared with 2006.
25,774
22,854
15,335
6,503
4,842
0
5,000
10,000
15,000
20,000
25,000
30,000
2006 2007 2008 2009 2010
Yearly Active Customers
FIRMOGRAPHICS
9
10
Construction, 34332, 59%
Agriculture, Forestry, and
Fishing, 8624, 15%
Manufacturing, 2888, 5%
Wholesale Trade, 2653,
4%
Services, 2429, 4%
Public Administration,
2281, 4%
Transportation and Public Utilities,
2066, 3% Mining, 1938, 3%
Retail Trade, 910, 2%
Finance, Insurance, Real Estate, 340, 1%
Looking at the broad SIC Divisions in the U.S., Construction locations
are the largest division, with 58.7% of your customers. Agriculture,
Forestry, and Fishing and Manufacturing are the next largest.
Data is available on 58,461 of your 58,503 customers.
11
20.6%
15.8%
8.1%
7.3%
3.5%
3.1%
3.1%
3.1%
2.9%
2.6%
29.8%
162-Heavy construction, except highway
179-Misc. special trade contractors
078-Landscape and horticultural services
161-Highway and street construction
019-General Farms, Primarily Crop
177-Concrete work
735-Misc. equipment rental & leasing
919-General government, nec
152-Residential building construction
171-Plumbing, heating, air-conditioning
Other
0% 5% 10% 15% 20% 25% 30% 35%
Customers' 3-Digit SIC
162-Heavy construction, except highway locations is the largest 3-digit
SIC, with 20.6% of your customers. 179-Misc. special trade contractors
and 078-Landscape and horticultural services are the next largest.
Data is available on 58,503 of your 58,503 customers.
CONTACTS
12
13
A summation of contact titles shows PRES is the most common
with 66% of your customers having it. OWNER and VP follow.
The chart below shows your 15 most common contact titles.
0% 10% 20% 30% 40% 50% 60% 70%
PRES
OWNER
VP
PRTNR
MGR
TREAS
CHRM
SEC
CEO
EQMGR
CFO
SUPV
MAYOR
SUPT
GM
66.0%
13.6%
6.7%
4.1%
3.4%
1.2%
0.8%
0.6%
0.6%
0.4%
0.3%
0.3%
0.3%
0.3%
0.2%
Percent of Customers
Titl
eTop Contact Titles
12,522 (21%) of your 58,503 customers have title that could be evaluated.
14
6% of your customers are Female and 94% are Male.
Female, 2130, 6%
Male, 36394, 94%
Gender could be identified through given names for 38,524 (66%) of your 58,503 customers.
15
Hispanic, 996, 2%
Unknown, 40475, 98%
2% of your customers have Hispanic surnames. Note: many
Hispanics don't have Hispanic surnames, so this should be
viewed as a minimum.
41,471 (71%) of your 58,503 customers have last names that could be analyzed.
GEOGRAPHY
16
17
Of the 9 U.S. Census Divisions, the South Atlantic has the most
customers, 21%. The West South Central and Pacific follow.
20.7%
13.0%
11.9%
11.4%
10.7%
9.2%
7.8%
7.7%
7.5%
South Atlantic
West South Central
Pacific
Middle Atlantic
East North Central
Mountain
East South Central
West North Central
New England
0% 5% 10% 15% 20% 25%
Ce
nsu
s D
ivis
ion
Percent of U.S. Customers
Customers' U.S. Census Divison
18
Texas is the state with the most customers, 7.5%. California and
Florida follow. The map displays your customer totals by state.
State Percent
Texas 7.5%
California 5.3%
Florida 5.2%
New York 4.8%
Pennsylvania 4.5%
North Carolina 4.0%
Georgia 3.7%
Washington 3.4%
Ohio 3.2%
Virginia 2.6%
Other 55.8%
19
1.6% of your customers are in your largest MSA, Houston-Sugar
Land-Baytown, TX. Atlanta-Sandy Springs-Marietta, GA and
New York-White Plains-Wayne, NY-NJ follow. 31.1% of your
customers are not in a MSA.
1.6%
1.5%
1.4%
1.1%
1.0%
1.0%
0.9%
0.8%
0.8%
0.7%
58.1%
31.1%
Houston-Sugar Land-Baytown, TX
Atlanta-Sandy Springs-Marietta, GA
New York-White Plains-Wayne, NY-NJ
Pittsburgh, PA
Chicago-Joliet-Naperville, IL
Seattle-Bellevue-Everett, WA
Portland-Vancouver-Hillsboro, OR-WA
Philadelphia, PA
Washington-Arlington-Alexandria, DC
Dallas-Plano-Irving, TX
Other
Non-MSA
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
MSA
Percent of U.S. Customers
Customers' U.S. MSA
20
Houston is the largest city with 0.6% of your customers. San
Antonio and Phoenix follow. The three largest cities account for
1.2% of your customers. 7.0% are in the shown Top 50 cities.City State Customers Percent City State Customers Percent
Houston Texas 376 0.6% Bakersfield California 68 0.1%
San Antonio Texas 151 0.3% Portland Oregon 68 0.1%
Phoenix Arizona 146 0.2% Fort Myers Florida 67 0.1%
Jacksonville Florida 138 0.2% Richmond Virginia 67 0.1%
Orlando Florida 110 0.2% Louisville Kentucky 66 0.1%
Miami Florida 107 0.2% Tacoma Washington 66 0.1%
Pittsburgh Pennsylvania 102 0.2% Knoxville Tennessee 65 0.1%
Dallas Texas 100 0.2% Denver Colorado 63 0.1%
Oklahoma City Oklahoma 99 0.2% Snohomish Washington 63 0.1%
Fort Worth Texas 97 0.2% Memphis Tennessee 60 0.1%
Salt Lake City Utah 93 0.2% Baltimore Maryland 59 0.1%
Birmingham Alabama 89 0.2% Albuquerque New Mexico 58 0.1%
Tucson Arizona 89 0.2% Chesapeake Virginia 58 0.1%
Austin Texas 84 0.1% Colorado Springs Colorado 58 0.1%
Charlotte North Carolina 80 0.1% Mobile Alabama 58 0.1%
Cincinnati Ohio 79 0.1% Ocala Florida 58 0.1%
Anchorage Alaska 77 0.1% Savannah Georgia 58 0.1%
Naples Florida 77 0.1% Seattle Washington 58 0.1%
Baton Rouge Louisiana 76 0.1% Tulsa Oklahoma 58 0.1%
Chicago Illinois 76 0.1% Billings Montana 57 0.1%
Tampa Florida 75 0.1% Mesa Arizona 57 0.1%
Saint Louis Missouri 74 0.1% Bend Oregon 54 0.1%
Las Vegas Nevada 73 0.1% Cleveland Ohio 54 0.1%
Raleigh North Carolina 71 0.1% Honolulu Hawaii 54 0.1%
Indianapolis Indiana 69 0.1% Olympia Washington 54 0.1%
Shown below is the distribution of your
customers throughout the lower 48 states of
the U.S.
21
22
Shown below is the distribution of customers in your largest state,
Texas, with 7.5% of your customers.
23
Shown below is the distribution of customers in your 2nd largest
state, California, with 5.3% of your customers.
24
The final map shows the distribution of customers in your 3rd
largest state, Florida, with 5.2% of your customers.
MARKET PENETRATION
25
Market penetration measures the
percent of potential customers in a
market that you have as customers We define a geographic market using MSAs and non-
MSA counties in 179 Bureau of Economic Analysis “Economic Areas.” We analyzed markets where you derive 80% or more of your revenue. The data is available by county.
Industries are defined using 5-digit NAICS industry codes for comparability with Bureau of Labor Statistics data. NAICs industries with 80% or more of your customers are analyzed.
The final analysis, then, includes your major markets and major industries.
26
27
You have 247 markets that total more than 80% of your
customers. In total, 80% of your customers are in these markets.
Shown below are your Top 50 markets.
Market Percent
Cumu-
lative
Percent Market Percent
Cumu-
lative
Percent
Houston-Sugar Land-Baytown, TX 1.6% 1.6% Salt Lake City, UT 0.6% 21.9%
Atlanta-Sandy Springs-Marietta, GA 1.6% 3.2% Charlotte-Gastonia-Rock Hill, NC-SC 0.6% 22.5%
New York-White Plains-Wayne, NY-NJ 1.4% 4.5% Cleveland-Elyria-Mentor, OH 0.6% 23.1%
Pittsburgh, PA 1.1% 5.6% Riverside-San Bernardino-Ontario, CA 0.6% 23.7%
Chicago-Joliet-Naperville, IL 1.0% 6.7% Seattle-Tacoma-Olympia, WA Non-MSA 0.6% 24.3%
Boston-Worcester-Manchester, MA-NH Non-MSA 1.0% 7.7% Lexington-Fayette-Frankfort-Richmond, KY Non-MSA 0.6% 24.9%
Seattle-Bellevue-Everett, WA 1.0% 8.7% Birmingham-Hoover, AL 0.6% 25.4%
Portland-Vancouver-Hillsboro, OR-WA 0.9% 9.6% Fort Worth-Arlington, TX 0.5% 25.9%
Philadelphia, PA 0.8% 10.4% Kansas City, MO-KS 0.5% 26.5%
Washington-Arlington-Alexandria, DC 0.8% 11.2% Denver-Aurora-Broomfield, CO 0.5% 27.0%
Denver-Aurora-Boulder, CO Non-MSA 0.7% 11.9% Boston-Quincy, MA 0.5% 27.5%
Minneapolis-St. Paul-St. Cloud, MN-WI Non-MSA 0.7% 12.6% Richmond, VA 0.5% 28.0%
Dallas-Plano-Irving, TX 0.7% 13.3% Cambridge-Newton-Framingham, MA 0.5% 28.5%
Newark-Union, NJ-PA 0.7% 14.1% San Antonio-New Braunfels, TX 0.5% 29.0%
Nassau-Suffolk, NY 0.7% 14.8% Casper, WY Non-MSA 0.5% 29.5%
Phoenix-Mesa-Glendale, AZ 0.7% 15.5% Hartford-West Hartford-East Hartford, CT 0.5% 30.0%
Dallas-Fort Worth, TX Non-MSA 0.7% 16.2% Cincinnati-Middletown, OH-KY-IN 0.5% 30.5%
Orlando-Kissimmee-Sanford, FL 0.7% 16.9% Los Angeles-Long Beach-Glendale, CA 0.5% 30.9%
Atlanta-Sandy Springs-Gainesville, GA-AL Non-MSA 0.7% 17.5% Bridgeport-Stamford-Norwalk, CT 0.5% 31.4%
Baltimore-Towson, MD 0.7% 18.2% Providence-New Bedford-Fall River, RI-MA 0.5% 31.8%
St. Louis, MO-IL 0.6% 18.8% Asheville-Brevard, NC Non-MSA 0.5% 32.3%
Edison-New Brunswick, NJ 0.6% 19.5% Oklahoma City, OK 0.4% 32.7%
Tampa-St. Petersburg-Clearwater, FL 0.6% 20.1% Virginia Beach-Norfolk-Newport News, VA-NC 0.4% 33.2%
Jackson-Yazoo City, MS Non-MSA 0.6% 20.7% Little Rock-North Little Rock-Pine Bluff, AR Non-M 0.4% 33.6%
Minneapolis-St. Paul-Bloomington, MN-WI 0.6% 21.3% New Orleans-Metairie-Kenner, LA 0.4% 34.1%
28
You have 20 industries that total more than 80% of your
customers. In total, 81% of your customers are in these
industries. Shown below are your top industries.Industry
Percent
Cumu-
lative
Percent
Site Preparation Contractors 18.7% 18.7%
Landscaping Services 8.2% 26.9%
Highway, Street, and Bridge Construction 7.8% 34.7%
Water and Sewer Line and Related Structures Construction 7.3% 42.0%
Other Heavy and Civil Engineering Construction 6.2% 48.2%
All Other Crop Farming 3.6% 51.8%
Other General Government Support 3.1% 54.9%
Power and Communication Line and Related Structures Construction 3.1% 58.0%
Residential Building Construction 2.7% 60.7%
Commercial and Institutional Building Construction 2.7% 63.3%
Plumbing, Heating, and Air-Conditioning Contractors 2.6% 65.9%
Poured Concrete Foundation and Structure Contractors 2.5% 68.4%
All Other Specialty Trade Contractors 2.4% 70.7%
Logging 2.0% 72.7%
Construction, Transportation, Mining, and Forestry Machinery and Equipment Rental and Leasing1.8% 74.6%
Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers1.6% 76.1%
Beef Cattle Ranching and Farming, including Feedlots 1.4% 77.6%
Electrical Contractors and Other Wiring Installation Contractors 1.2% 78.8%
Support Activities for Mining 1.1% 79.9%
Oil and Gas Pipeline and Related Structures Construction 1.0% 80.9%
29
Your overall penetration rate is 6.7%. Your top industry is All
Other Crop Farming that has 2214 prospects. You have 1459
customers for a 66% penetration rate. The chart shows your top
15 most penetrated industries.
0% 10% 20% 30% 40% 50% 60% 70%
All Other Crop Farming
Other Heavy and Civil Engineering Construction
Water and Sewer Line and Related Structures Construction
Highway, Street, and Bridge Construction
Site Preparation Contractors
Power and Communication Line and Related Structures…
Oil and Gas Pipeline and Related Structures Construction
Other General Government Support
Construction and Mining (except Oil Well) Machinery and…
Construction, Transportation, Mining, and Forestry…
Logging
Beef Cattle Ranching and Farming, including Feedlots
Poured Concrete Foundation and Structure Contractors
Landscaping Services
Support Activities for Mining
66%
55%
35%
30%
29%
28%
24%
22%
20%
19%
14%
12%
8%
5%
5%
Penetration
NA
ICS
Ind
ust
ry2010 Customer Industry Penetration
37,241 of your 58,503 customers can be identified to your primary geographies and industries.
30
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
New Orleans-Metairie-Bogalusa, LA Non-MSA
Gulfport-Biloxi, MS
Knoxville-Sevierville-La Follette, TN Non-MSA
Asheville-Brevard, NC Non-MSA
Erie, PA Non-MSA
Pittsburgh-New Castle, PA Non-MSA
Mobile-Daphne-Fairhope, AL Non-MSA
Atlanta-Sandy Springs-Gainesville, GA-AL Non-MSA
Asheville, NC
Jackson, MS
Charleston, WV
Beaumont-Port Arthur, TX
Seattle-Tacoma-Olympia, WA Non-MSA
Boston-Worcester-Manchester, MA-NH Non-MSA
Johnson City-Kingsport-Bristol (Tri-Cities), TN-VA
26.0%
20.5%
18.7%
17.5%
16.6%
16.4%
15.4%
15.4%
15.3%
15.1%
15.1%
15.0%
14.8%
14.7%
14.4%
Penetration
Mar
ket
2010 Customer Market Penetration
Your top geography is New Orleans-Metairie-Bogalusa, LA Non-MSA that has 431
prospects. You have 112 customers for a 26.0% penetration rate. Gulfport-Biloxi,
MS and Knoxville-Sevierville-La Follette, TN Non-MSA follow. The chart shows your
top 15 most penetrated geographies.
31
Below are your 50 largest markets overall with your customer
count and penetration in the selected NAICS codes. Your
penetration rate in these markets is 7.3%
Market
Cust-
omers
Pene-
tration
Rate Market
Cust-
omers
Pene-
tration
Rate
Houston-Sugar Land-Baytown, TX 729 8.0% Salt Lake City, UT 297 9.2%
Atlanta-Sandy Springs-Marietta, GA 752 7.2% Charlotte-Gastonia-Rock Hill, NC-SC 295 7.3%
New York-White Plains-Wayne, NY-NJ 628 3.4% Cleveland-Elyria-Mentor, OH 269 6.3%
Pittsburgh, PA 514 10.4% Riverside-San Bernardino-Ontario, CA 265 4.8%
Chicago-Joliet-Naperville, IL 465 2.6% Seattle-Tacoma-Olympia, WA Non-MSA 285 14.8%
Boston-Worcester-Manchester, MA-NH Non-MSA 498 14.7% Lexington-Fayette-Frankfort-Richmond, KY Non-MSA 254 13.3%
Seattle-Bellevue-Everett, WA 500 7.5% Birmingham-Hoover, AL 236 11.1%
Portland-Vancouver-Hillsboro, OR-WA 423 7.5% Fort Worth-Arlington, TX 249 7.2%
Philadelphia, PA 359 4.8% Kansas City, MO-KS 262 6.0%
Washington-Arlington-Alexandria, DC 364 4.3% Denver-Aurora-Broomfield, CO 236 3.8%
Denver-Aurora-Boulder, CO Non-MSA 371 9.7% Boston-Quincy, MA 248 5.6%
Minneapolis-St. Paul-St. Cloud, MN-WI Non-MSA 337 7.0% Richmond, VA 249 7.1%
Dallas-Plano-Irving, TX 302 4.8% Cambridge-Newton-Framingham, MA 239 5.7%
Newark-Union, NJ-PA 337 6.1% San Antonio-New Braunfels, TX 229 7.0%
Nassau-Suffolk, NY 289 2.8% Casper, WY Non-MSA 231 8.7%
Phoenix-Mesa-Glendale, AZ 317 4.2% Hartford-West Hartford-East Hartford, CT 238 8.0%
Dallas-Fort Worth, TX Non-MSA 312 11.3% Cincinnati-Middletown, OH-KY-IN 213 5.2%
Orlando-Kissimmee-Sanford, FL 318 6.0% Los Angeles-Long Beach-Glendale, CA 193 1.8%
Atlanta-Sandy Springs-Gainesville, GA-AL Non-MSA 340 15.4% Bridgeport-Stamford-Norwalk, CT 209 7.5%
Baltimore-Towson, MD 308 4.5% Providence-New Bedford-Fall River, RI-MA 215 4.5%
St. Louis, MO-IL 282 4.3% Asheville-Brevard, NC Non-MSA 228 17.5%
Edison-New Brunswick, NJ 292 5.0% Oklahoma City, OK 224 6.6%
Tampa-St. Petersburg-Clearwater, FL 286 4.3% Virginia Beach-Norfolk-Newport News, VA-NC 208 5.2%
Jackson-Yazoo City, MS Non-MSA 262 13.6% Little Rock-North Little Rock-Pine Bluff, AR Non-M 196 11.9%
Minneapolis-St. Paul-Bloomington, MN-WI 276 3.7% New Orleans-Metairie-Kenner, LA 190 6.0%
32
County Percent
Turner, GA 100%
Owsley, KY 100%
Quitman, MS 75%
Magoffin, KY 67%
San Juan, CO 60%
Pearl River, MS 53%
Hamilton, KS 50%
Harrison, MO 50%
Martin, KY 47%
Holmes, MS 45%
Turner, GA is your most highly penetrated county. You serve
100% of the targeted customers there. Owsley, KY and Quitman,
MS follow. Listed below are your Top 10 most penetrated
counties.
33
Looking at the largest industries, the 15 largest industries and your
penetration rate are shown below. Your penetration rate is 0.8% in the
largest industry, Residential Building Construction. Your penetration
rate is 5.0% in the 2nd largest industry, Landscaping Services.
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Residential Building Construction
Landscaping Services
Plumbing, Heating, and Air-Conditioning Contractors
Electrical Contractors and Other Wiring Installation…
Commercial and Institutional Building Construction
All Other Specialty Trade Contractors
Site Preparation Contractors
Poured Concrete Foundation and Structure Contractors
Highway, Street, and Bridge Construction
Support Activities for Mining
Water and Sewer Line and Related Structures Construction
Logging
Other General Government Support
Other Heavy and Civil Engineering Construction
Power and Communication Line and Related Structures…
0.8%
5.0%
1.5%
0.9%
3.7%
3.5%
28.8%
7.8%
30.2%
4.9%
34.8%
13.8%
21.6%
55.1%
28.1%
Penetration
NA
ICS
Ind
ust
ry2010 Customer Industry Penetration -- 15 Largest Industries
34
The chart below shows the 15 largest markets and your penetration rate.
Your penetration rate is 3.4% in the largest market, New York-White
Plains-Wayne, NY-NJ. Your penetration rate exceeds your average rate
of 6.7% in 3 of the 15 largest markets.
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%
New York-White Plains-Wayne, NY-NJ
Chicago-Joliet-Naperville, IL
Atlanta-Sandy Springs-Marietta, GA
Los Angeles-Long Beach-Glendale, CA
Nassau-Suffolk, NY
Houston-Sugar Land-Baytown, TX
Washington-Arlington-Alexandria, DC
Phoenix-Mesa-Glendale, AZ
Philadelphia, PA
Minneapolis-St. Paul-Bloomington, MN-WI
Baltimore-Towson, MD
Seattle-Bellevue-Everett, WA
Tampa-St. Petersburg-Clearwater, FL
St. Louis, MO-IL
Denver-Aurora-Broomfield, CO
3.4%
2.6%
7.2%
1.8%
2.8%
8.0%
4.3%
4.2%
4.8%
3.7%
4.5%
7.5%
4.3%
4.3%
3.8%
Penetration
Mar
ket
2010 Customer Market Penetration -- 15 Largest Markets
PRODUCTS
35
36
Based on the Item Description, EXCAVATOR is your largest revenue producing item,
generating $10.4B revenue over the five-year period. This is 36% of your total revenue
of $29.1B. Shown below are your top 15 of your 38 total revenue producing items
that generated 96% of your revenue.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
$0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
Qu
anti
ty
Re
ven
ue
Item Description
Top Item Description -- Revenue and Quantity
37
Based on the Item Description, the OFF ROAD TRUCK has the highest
revenue per unit at $832,201. The CONV SCRAPER and ART HAUL
UNIT follow at $827,532 and $622,287, respectively. Shown below are
your top items.
$287,040
$236,873
$622,287
$52,171
$219,341
$832,201
$93,777$122,772
$207,463
$827,532
$284,318$296,348
$156,721
$80,156
$212,747
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Re
ven
ue
Item Description
Top Item Description -- Revenue per Unit
DECILE ANALYSIS
38
Decile analysis identifies the
characteristics of your top customers
Customers were placed into one of ten deciles for each
year based on their revenue. Because of ties, some
deciles contain more than 10% of your customers.
Data for the most recent year was analyzed in-depth to
determine differences between deciles and suggest
opportunities for revenue enhancement.
Decile migration over the years was examined to see
how customers grew and if retention is a problem.
39
Current Year Details
40
41
50%
10%
15%
11%
9%
9%
7%
10%
7%
11%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percent ofTotal Revenue
Percent ofCustomers
Customer Revenue Distribution by Decile -- 2010
1 2 3 4 5 6 7 8 9 10
Decile
The top 10% of your customers produced 50% of your revenue in 2010.
The top 21% of your customers produced 65%.
42
The average 2010 revenue of your top decile was $1,669,199. Average
revenue per customer for your next decile falls to $469,657. For the
lowest decile, the average revenue per customer is only $27,000.
$1,669,199
$469,657
$317,359
$230,352
$211,864
$177,592
$91,376
$69,879
$47,945
$27,000
1
2
3
4
5
6
7
8
9
10
Average Revenue
De
cile
Average Revenue per Customer by Decile -- 2010
43
Your top decile averages 3.5 transactions per year. This is 2.6 times the
1.3 of your next decile. The last decile averages 1.0 transactions per
year.
3.5
1.3
1.3
1.0
1.0
1.1
1.1
1.0
1.0
1.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
1
2
3
4
5
6
7
8
9
10
Average Transactions
De
cile
Average Transactions per Customer by Decile -- 2010
44
$574,396
$396,664
$275,157
$230,122
$210,174
$167,162
$87,089
$69,879
$47,649
$26,970
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000
1
2
3
4
5
6
7
8
9
10
Average Revenue per Transaction
De
cile
Average Revenue per Transaction by Decile -- 2010
Customers in your top decile order $574,396 per transaction. This is
45% higher than the next decile's $396,664. Your last decile only orders
$26,970 per transaction.
45
Customers in your top decile order 1.43 items per transaction. This
differs by 27% from the next decile's 1.12. Your last decile orders 1.00
items per transaction.
1.4
1.1
1.1
1.0
1.0
1.1
1.0
1.0
1.0
1.0
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6
1
2
3
4
5
6
7
8
9
10
Average Items per Transaction
De
cile
Average Items per Transaction by Decile -- 2010
Best Customers Profile
46
Best Customers Profile attempts to
differentiate your top 20% customers
from others using external data. External data is used because this enables you to look for clones in
the market that you can further develop.
To make the segments meaningful, the minimum size is 10% of your
customer base. The number of split levels is capped at five.
The methodology picks the best variables to use.
For this analysis, the following variables were used:
47
Industry: 3 Digit SIC
Gender: Male/Female
Ethnicity: Hispanic/Unknown
State
MSA
Contact Rank
Contact Department
48
A decision tree shows the external factors to determine your top 20%. The first split is on 3-digit SIC,
which is split 4 ways. The top node has 43 SICs with 7% of your customers. 62% of the customers in
this cluster are in the top 20%. The next node has 37% of your customers in the 29 SICs and 27% of
the customers in this node are in the top 20%. The next node has 16 SICs with 39% of your clusters.
Only 17% of the customers are in the top 20%, but this is split again by rank and a node with 4 ranks
that are not “Other” has 10% of the customers with 25% in the top 20%. The final SIC node has 79
SICs with 17% of your customers, and only 2% of these are in the top 20%.
Migration
49
50
Customers migrated between deciles as shown below for the first
two years of data, 2005 to 2006. 31% of customers in decile 1 in
2005 remained in decile 1 in 2006. 46% of decile 1 customers
didn't order in 2006. 77% of your total customers didn't order the
following year.
2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost
1 31% 10% 5% 3% 1% 2% 1% 0% 1% 0% 46%
2 9% 9% 6% 4% 3% 2% 2% 1% 1% 0% 64%
3 5% 6% 5% 4% 3% 2% 1% 1% 1% 0% 72%
4 3% 4% 4% 6% 2% 2% 2% 1% 1% 1% 74%
5 2% 3% 3% 3% 3% 1% 1% 2% 1% 0% 81%
6 1% 2% 2% 2% 2% 4% 2% 1% 1% 1% 82%
7 1% 1% 1% 2% 1% 3% 3% 1% 1% 1% 85%
8 1% 1% 1% 2% 2% 2% 2% 2% 1% 1% 87%
9 0% 0% 1% 1% 0% 1% 2% 1% 2% 1% 90%
10 0% 1% 0% 0% 0% 1% 1% 1% 2% 2% 91%
Total 5% 4% 3% 3% 2% 2% 2% 1% 1% 1% 77%
2006 Decile
Note: Red italics = lower decile migration; Green bold = higher decile migration.
51
2005 Decile
Moved
Up
Stayed
Same
Moved
Down Lost
1 0% 31% 23% 46%
2 9% 9% 18% 64%
3 11% 5% 11% 72%
4 10% 6% 9% 74%
5 10% 3% 5% 81%
6 9% 4% 6% 82%
7 8% 3% 3% 85%
8 9% 2% 2% 87%
9 6% 2% 1% 90%
10 7% 2% 0% 91%
Total 8% 7% 8% 77%
Shown below is a migration summary for 2005. In total, 8% of
your customers moved to a higher decile, 7% remained the
same, and 8% moved down. 77% did not do business the
following year.
52
Note: Red italics = lower decile migration; Green bold = higher decile migration.
When weighted by revenue, 48% of customers in decile 1 in
2005 remained in decile 1 in 2006. 34% of decile 1 customers
didn't order in 2006, lower than the customer count migration.
Customers producing 52% of your revenue didn't order the
following year. This equates to $5.4B of lost revenue.
2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost
1 48% 8% 4% 2% 1% 1% 1% 0% 0% 0% 34%
2 10% 9% 6% 4% 3% 2% 1% 1% 1% 0% 63%
3 6% 6% 5% 4% 3% 2% 1% 1% 1% 0% 72%
4 3% 4% 4% 6% 2% 2% 2% 1% 1% 1% 74%
5 2% 3% 3% 3% 3% 1% 1% 2% 1% 0% 82%
6 1% 2% 2% 2% 2% 4% 2% 2% 1% 1% 82%
7 1% 1% 1% 2% 1% 3% 3% 1% 2% 1% 85%
8 1% 1% 1% 2% 2% 2% 2% 2% 1% 1% 87%
9 0% 1% 1% 1% 0% 1% 2% 1% 2% 1% 90%
10 0% 1% 0% 0% 0% 1% 1% 1% 2% 2% 92%
Total 29% 7% 4% 3% 2% 2% 1% 1% 1% 0% 52%
2006 Decile Revenue Weighted
53
16,963 customers were added in 2006. They generated $4.2B
revenue. 931 produced enough revenue to be in decile 1.
2006 Decile Number Revenue
1 931 $1,461,475,751
2 1,361 $715,751,819
3 1,587 $592,966,858
4 1,773 $414,861,101
5 1,646 $327,486,098
6 1,846 $258,424,893
7 1,793 $159,785,895
8 2,105 $140,725,532
9 2,101 $104,454,472
10 1,820 $70,138,960
Total 16,963 $4,246,071,379
54
Note: Red italics = lower decile migration; Green bold = higher decile migration.
Customers migrated between deciles as shown below for the last
two years of data, 2009 to 2010. 18% of customers in decile 1 in
2009 remained in decile 1 in 2010. 67% of decile 1 customers
didn't order in 2010. 87% of your total customers didn't order the
following year.
2009 Decile 1 2 3 4 5 6 7 8 9 10 Lost
1 18% 5% 3% 2% 1% 2% 1% 0% 1% 0% 67%
2 5% 3% 2% 2% 1% 1% 1% 0% 0% 0% 83%
3 3% 2% 3% 2% 1% 2% 1% 0% 1% 0% 84%
4 2% 2% 2% 3% 2% 1% 1% 1% 0% 0% 85%
5 1% 2% 2% 1% 3% 1% 1% 1% 1% 0% 89%
6 1% 1% 1% 1% 1% 2% 2% 2% 1% 1% 87%
7 0% 0% 1% 0% 0% 1% 2% 1% 2% 1% 91%
8 0% 0% 1% 0% 0% 1% 1% 1% 0% 0% 96%
9 0% 0% 0% 0% 0% 0% 1% 1% 2% 0% 94%
10 0% 1% 1% 0% 0% 0% 1% 2% 1% 1% 95%
Total 3% 2% 2% 1% 1% 1% 1% 1% 1% 0% 87%
2010 Decile
55
2009 Decile
Moved
Up
Stayed
Same
Moved
Down Lost
1 0% 18% 15% 67%
2 5% 3% 9% 83%
3 6% 3% 7% 84%
4 6% 3% 5% 85%
5 5% 3% 4% 89%
6 6% 2% 5% 87%
7 3% 2% 3% 91%
8 3% 1% 0% 96%
9 4% 2% 0% 94%
10 4% 1% 0% 95%
Total 5% 4% 4% 87%
Your migration summary for 2009 shows that, in total, 5% of your
customers moved to a higher decile, 4% remained the same, and
4% moved down. 87% did not do business the following year.
56
Note: Red italics = lower decile migration; Green bold = higher decile migration.
When weighted by revenue, 24% of customers in decile 1 in
2009 remained in decile 1 in 2010. 59% of decile 1 customers
didn't order in 2010, lower than the customer count migration.
Customers producing 72% of your revenue didn't order the
following year. This equates to $1.7B of lost revenue.
2009 Decile 1 2 3 4 5 6 7 8 9 10 Lost
1 24% 7% 4% 2% 1% 2% 1% 0% 1% 0% 59%
2 6% 3% 2% 2% 1% 1% 1% 0% 0% 0% 83%
3 3% 2% 3% 2% 1% 2% 1% 0% 1% 0% 84%
4 2% 2% 2% 3% 1% 1% 1% 1% 0% 0% 85%
5 1% 2% 2% 1% 3% 1% 1% 1% 1% 0% 89%
6 1% 2% 2% 1% 1% 2% 2% 2% 1% 1% 87%
7 0% 0% 1% 0% 0% 1% 3% 1% 1% 1% 91%
8 0% 0% 1% 0% 0% 1% 1% 1% 0% 0% 96%
9 1% 0% 0% 0% 0% 0% 2% 1% 2% 0% 93%
10 0% 0% 0% 0% 0% 0% 1% 2% 1% 1% 95%
Total 13% 5% 3% 2% 1% 2% 1% 0% 1% 0% 72%
2010 Decile Revenue Weighted
57
3,995 brand new or returning customers were added in 2010.
They generated $1.1B revenue. 275 produced enough revenue
to be in decile 1.
2010 Decile Number Revenue
1 275 $408,067,457
2 420 $197,041,774
3 342 $107,966,976
4 429 $98,908,433
5 480 $101,616,345
6 329 $58,585,500
7 433 $39,369,595
8 399 $27,906,589
9 654 $31,228,867
10 234 $6,455,967
Total 3,995 $1,077,147,503
58
Note: Red italics = lower decile migration; Green bold = higher decile migration.
Looking at data from the first and last years, 2005 to 2010,
customers migrated between deciles as shown below. Only 5%
of customers in decile 1 in 2005 remained in decile 1 in 2010.
87% of decile 1 customers didn't order in 2010. 95% of your total
2005 customers didn't order in 2010.
2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost
1 5% 3% 1% 1% 0% 1% 1% 0% 0% 0% 87%
2 1% 2% 1% 1% 1% 1% 0% 0% 0% 0% 93%
3 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 93%
4 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 96%
5 0% 1% 0% 1% 1% 0% 0% 0% 0% 0% 96%
6 0% 0% 0% 0% 0% 0% 1% 1% 0% 0% 96%
7 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%
8 0% 0% 0% 0% 0% 0% 1% 0% 0% 0% 98%
9 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%
10 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 98%
Total 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 95%
2010 Decile
59
Note: Red italics = lower decile migration; Green bold = higher decile migration.
When weighted by revenue, the picture is better. 8% of
customers in decile 1 in 2005 remained in decile 1 in 2010. 83%
of decile 1 customers didn't order in 2010, lower than the
customer count migration. Customers producing 88% of 2005
revenue didn't order in 2010. This equates to $9.3B of lost
revenue.
2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost
1 8% 3% 1% 1% 0% 1% 1% 0% 0% 0% 83%
2 1% 2% 1% 1% 1% 1% 0% 0% 0% 0% 92%
3 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 93%
4 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 96%
5 0% 1% 0% 1% 1% 0% 0% 0% 0% 0% 96%
6 0% 0% 0% 0% 0% 0% 1% 1% 0% 0% 96%
7 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%
8 0% 0% 0% 0% 0% 0% 1% 0% 0% 0% 98%
9 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%
10 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 99%
Total 5% 2% 1% 1% 1% 1% 1% 0% 0% 0% 88%
2010 Decile Revenue Weighted
RFM ANALYSIS
60
Recency, Frequency, and Monetary Value
Analysis Enables You to Target Customers Based
on These Attributes for Responsiveness
Customers are placed into deciles for each of these
variables over the entire time period.
A composite score is also computed with equal
weighting given to each.
This data is appended to your customer master file for
future use.
61
62
Customers in your top recency decile range from 0 days to 419
days from the last transaction in your data. They average 206
days from your last transaction.
206
611
850
1,002
1,151
1,272
1,388
1,508
1,625
1,748
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,0000
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1 2 3 4 5 6 7 8 9 10
Re
cen
cy --
Day
s
Nu
mb
er
of
Cu
sto
me
rs
Decile
RFM Recency by Decile
Number of Customers Mean
63
6 2 1 0
50
100
150
200
250
300
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1 2 3
Fre
qu
en
cy --
Nu
mb
er
of T
ran
sact
ion
s
Nu
mb
er
of
Cu
sto
me
rs
Decile
RFM Frequency by Decile
Number of Customers Mean
3 to 261 is the range of transactions for customers in your top
frequency decile. They average 6 transactions. Because of the
low number of transactions, you only have 3 deciles.
64
$895,935 to $241.6M is revenue range for customers in your top
monetary value decile. $3.1M is their average. Customers in
decile 2 average $646,831.
$3,075,063
$646,831
$404,875 $253,510 $203,744 $144,815 $92,108 $67,420 $49,950 $38,169
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1 2 3 4 5 6 7 8 9 10
Mo
ne
tary
Val
ue
Nu
mb
er
of
Cu
sto
me
rs
Decile
RFM Monetary Value by Decile
Number of Customers Mean
Max = $241,577,677
MARKET BASKET ANALYSIS
65
Market Basket Analysis identifies
products purchased together for cross-
sell opportunities Data was analyzed two ways: transaction specific
purchases and customer purchases over the time period
Data is only included for products that sell at least as
much or more than the average product.
Products must also be purchased together at least a
certain percentage of the time.
66
67
No major product pairs are purchased together in the
same transaction. This may be because we used UCC
data and only large equipment is included.
68
You have 4 product pairs purchased together by the same customer over the five year
period where the co-purchase is greater than 0.5%. Your top products (based on
sales of the main product) to be sold together are EXCAVATOR and 1 DRUM VIB
COMP. They are sold together 94% more often than expected. Shown below are
your top cross-sell products.
Main Product Co-Product
Purchased
Together
Percent
Lift
Percent
EXCAVATOR 1 DRUM VIB COMP 2.2% 94.1%
EXCAVATOR MOTOR GRADER 1.5% 19.3%
WHEEL LOADER 1 DRUM VIB COMP 1.4% 61.7%
WHEEL LOADER MOTOR GRADER 1.3% 35.7%